Wednesday, November 11, 2009

Public Embarrassment 

Here is an interesting PR challenge. How do you recover credibility after publicly going back on your word? General Motors had announced that it was going to sell Opel, its European subsidiary. Everything was set for the sale. Then, GM announced it had changed its mind and is not going to peddle the brand. Predictably, everyone in Germany is angry with the company, especially politicians and unions. GM's CEO acknowledges the embarrassment the company has caused and has promised more freedom for Opel to operate. Still, that might not be enough to salve German feelings. It also looks like GM is unable to figure out what to do in its weakened state. That doesn't help the company. From a PR perspective, GM has hurt itself in this episode.


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